Tag: forex candlesticks

Forex Candlestick Patterns – Best Patterns in candlestick charting

Forex Candlesticks has lot of Patterns when doing analysis. When it comes to using them, you must focus on some key ones and ignore the rest till the time you have gained enough experience.

Else, the things will become confusing during forex chat analysis.

To get you started, I am sharing with you top 3 forex candlestick patterns that you must always be aware of –

1. Forex Candlestick Doji – Definitely “a must” to know. When analysing charts which are 1 hr based or above, then a doji candlesticks pattern holds a prominent importance.

2. Candlestick Engulfing Pattern – Bearish or bullish engulfing, both display significant reversal charactersticks. Whenever spotted on a daily chart or even a 1 hr chart, it indicates that market is about to reverse. They are pretty reliable forex patterns

3. Morning or Evening Stars fomation – Like engulfing patterns, these forex candlestick formations are also indication of that market is about to reverse. However, these patterns are not too frequent. But whenever spotted, they are quite reliable.

Along with this there are certain important points related to candlesticks that you must be aware of. These points I have shared in my free forex report.

You can get free access to that report by joining my mailing list at – Learn Forex Candlesticks

Forex Candlesticks are versatile – Candlesticks can be used in other markets also.

Forex Candlesticks are some of the most flexible technical indicators around. By that I mean that they can be used in any market such as Commodities, stock trading, options, futures and what not.

The most common candlestick patterns such as doji, spinning tops, hammer etc are found in charts of all form of markets.

So once you learn the forex candlestick, you are well equipped to use that information in other markets also.  

And the good this forex tecnical indicator is that they are highly accurate. You can come across folks who just use candlestick to enter and exit the trades.

If you are looking for a free forex trading strategy that is based on candlesticks, here is what I suggest –

Just enter your email and name in the box above and I’ll immediately send you a manual that includes this forex trading strategy.

So go ahead and enter your name and email id in the box and receive a free trading strategy that uses Forex Candlesticks.

Forex Candlestick Doji on EUR/USD is hitting forex market Sentiment

Doji Forex candlestick, like I mentioned is one of the most prominent candlesticks patterns out there in forex market. This was very visible when a doji was seen on the eur/usd daily chart few days ago. This made the traders stop the bull run that was going on very aggresively.

As soon as a doji was seen, quite a few traders closed their position the next day. This resulted in a good sized bearish candlestick the following day.

But, personally I feel that there is still enough strength remining in the market as the trend was very strong. so, even though forex doji was visible which was followed by a bearish red candle, I feel that the market will get good support at 38% or may be 50% retracement level and will rebound from there.

When you are using candlesticks, you must also see what are the other indicators pointing. Do they complement the candlestick or do they still represent good strength or continuation of the chart trend.

But, nevertheless, this certainly proves how strong a doji candlestick pattern is and how accurate are the forex candlesticks.

Forex Candlesticks Hanging Man – A pattern similar to Candlestick Doji

Hanging man candlestick pattern in Forex charts is typically seen during the uptrend. This pattern is very similar to doji like, it has a very short body and long lower wick.

But hanging man doesn’t has any upper wick and also it is seen only during uptrends where it means that the steam of the forex bullish run is over and the bearish run is about to start.

Where as a doji can be seen in both uptrend as well as downtrend.

As you can see in the image, how after the hanging man, the market reversed leaving all the buyers hanging.

Thats  how this candlestick pattern got its name.

So, needless to say, this is one of the very important patterns that is extremely reliable.

Thats all in this post on forex candlesticks

Forex Candlestick Doji – On what kind of charts is candlestick doji significant?

Forex Candlestick Doji like I mentioned is one of the very important patterns in candlestick. Presence of a doji on most of the charts can indicate that a reversal may be around the corner.

But not all forex charts carry such significant of doji. In some cases, this pattern would mean nothing at all.

Which charts are these?

Well any forex chart which is on day trading time frame such as 15 min., 5 min., may be even 30 min. would not carry so much significance of forex candlestick doji.

But, on the other hand presence on 1 hr chart and daily chart can cause flutters among traders and they may start adjusting their stop losses or may even choose to close the trades.

So, always watch for doji on daily, 8 hr or 1 hr forex chart. But on day trading time frames, feel free to ignore candlestics Doji.